Fintech is the combined field of finance and technology, where the latter improves the way the former works.
Put simply, fintech is the application of technology in finance to make it more efficient.
History of Fintech
The earliest notion of fintech starts from the telegraph, which was used to send money orders to distant places. Previously, such long-distance transfers could take days, if not weeks. With the telegraph, it was possible to send money within a few hours.
The second major breakthrough in fintech was during the 1960s, when the first credit cards entered public life. Cards were used to pay for restaurants, and the bill was later settled with the bank. This also marked the first consumer electronic cash payments in history.
The next major breakthrough in fintech came after SWIFT was introduced, which made cross-border payments easier and faster for any bank in the network. Previously, only international banks with multiple branches could do these settlements.
Applications
- Blockchain Technology
- SWIFT
- Payment Gateways
Disclaimer: Information provided on this website is purely educational and does not constitute financial advice. Please consult your financial advisor before trading or investing.